Those school years, I must say I was a real lover of physics; always telling the science behind every happening. When coming to the calculation of current it was another deep exposition when having to put voltage and resistance into consideration. A lot of what I did in my secondary school days was mainly to pass the exams, not really knowing the true concept behind every calculation. It may seem funny but as I have grown, I've come to see more application of those common terms.
Speaking of which, the world economy seems to be struggling with an overflow of inflation and it definitely needs some resistance. What can provide resistance rather than resistors, but I taught resistors where meant for electric circuits you may ask or is our economy now a circuit? Yes and yes, besides the earth being spherical our economic activities are like a circuit and when things go bad as it presently has, there will be malfunctions.
Let's first have the physics definition of 'resistance of a resistor'; depending on the resistivity material of the resistor, it can simply be defined as the amount of strength in a resistor to resist electric current. This definition points mostly to capability to outperform or combat current in that circuit. When looking at the present economy we can tag the word 'devaluation caused by inflation' to be the Current passing through a circuit( world economy) and what is expected to resist it? Yes of course the fiat currency.
Fiat Currencies are not good resistors
We all know how the system works; When there is a shortage of money in the system, the government orders for more to be printed into circulation and in the process it loses it value by certain percentage. It keeps reoccurring over and over and the percentage decline continues to pile up, beating down its purchasing power in the process. These resistors wear off the moment they are introduced into the circuit.
A man who saved $1 million dollars a decade ago doesn't need to be told he has run on a loss, just take it to the market and see what it can presently afford. Fiat currencies over the years have proven to be bad resistors, with the dollar market expected to crash soon, I wonder where the world economy will be directed to. Must we even wait for it to crash (in case it happens as predicted) or should we opt for a solution ahead of rainy days?
Over flow of current spoils a circuit and as it stands the world needs a new phase of currency reliance to mitigate this impending doom. How can we resist inflation, political uncertainties and debt levels in a country?
Crypto and Blockchain tech can play a huge part here
The present economy needs resistivity that cannot be found in the fiat but rather in the virtual currencies. Think of how a country's economy would look like a decade later if it were to be backed by bitcoin. Inasmuch as the governing bodies fear decentralization, it has an inevitable advantage to curb inflation. Resistivity has to do with resilience and as we know, decentralized systems are less vulnerable to single points of failure. When control is evenly distributed in a financial system, there is a reduced risk of systemic collapses across multiple nodes.
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Mismanagement of power needs to be mitigated if we are to climb out of our present economic dungeon. How certain are we in the amount of money that is continuously printed into the system? Where do they actually go? The cryptographic techniques of blockchain technology goes a long way here using its consensus mechanism to secure transaction and data.
Economic resistivity must be able to handle the area of fraud and hacking in the centralized system. You only hear how much in the news without having a clear analysis of how actually true it is. transparency of crypto must be leveraged, it is a valuable economic resistor that will promote trust among all financial participants through visible transactions.
The lack of inclusiveness in the current centralized is deterring an economy. The 'man no man' system of businesses has kept lots of entrepreneurs and economic movers at a struggling state when trying to access finance to expand business. Truth be told, entrepreneur play a huge part in opening up an economy. cryptocurrency opening up platforms for easy lending through decentralized finance (defi) can be leveraged to pull in fair capital to boost an economy.
High debt levels as earlier said by the government affects our GDP. It has led to uncertainties and concerns about a country's ability to repay its obligations. This is why a lot of investors sell off the currency, leading to reduced value. I see a need to adopt the blockchain tech crypto which will help resist the current challenges we are facing all over the world.
We have to accept the fact that centralization is no more efficient to fit the current system. There have been a lot of cover ups over the years which have piled up to deter the economy. Whether you like crypto or not, it has a solution that needs to be properly handled. The masses trust this system and it is enough to revive an economy.
To conclude, let me add, in the absence of value you should expect devaluation. Crypto has proven to be a valuable asset through the tech behind it. Its ability to fight economic decline shows that the resistance of these crypto's resistors are worth it. Economies are crashing at a fast pace, maybe it's because it has not really affected others. We will definitely wake up, I only hope we don't wake up too late.